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New Central Bank Act of the Philippines

New Central Bank Act of the Philippines

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Published by R.A.L.C.

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Categories:Types, Business/Law
Published by: R.A.L.C. on Oct 18, 2012
Copyright:Attribution Non-commercial

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02/22/2014

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R
EPUBLIC OF THE
P
HILIPPINES
C
ONGRESS OF THE
P
HILIPPINESH. No. 7037
 First Regular Session
 
}
S. No. 1235
R
EPUBLIC
 A 
CT
N
O
. 7653THE NEW CENTRAL BANK ACT
 Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
CHAPTER IE
STABLISHMENT AND
O
RGANIZATIONOF THE
B
 ANGKO
S
ENTRAL NG
P
ILIPINAS
 A 
RTICLE
I.
C
 REATION 
 , R
 ESPONSIBILITIES AND
C
ORPORATE
 P
OWERS OF THE
 B
 ANGKO
S
 ENTRAL
S
ECTION
1.
 Declaration of Policy
._The State shallmaintain a central monetary authority that shall function andoperate as an independent and accountable body corporate in thedischarge of its mandated responsibilities concerning money,banking and credit. In line with this policy, and considering itsunique functions and responsibilities, the central monetaryauthority established under this Act, while being a government-owned corporation, shall enjoy fiscal and administrative autonomy.S
EC
. 2.
Creation of the Bangko Sentral
._There is herebyestablished an independent central monetary authority, whichshall be a body corporate known as the Bangko Sentral ng Pilipinas, hereafter referred to as the Bangko Sentral.The capital of the Bangko Sentral shall be Fifty billion pesos(P50,000,000,000), to be fully subscribed by the Government of the Republic, hereafter referred to as the Government, Ten billionpesos (P10,000,000,000) of which shall be fully paid for by theGovernment upon the effectivity of this Act and the balance to bepaid for within a period of two (2) years from the effectivity of this Act in such manner and form as the Government, through theSecretary of Finance and the Secretary of Budget andManagement, may thereafter determine.
 
S
EC
. 3.
 Responsibility and Primary Objective
._TheBangko Sentral shall provide policy directions in the areas of money, banking, and credit. It shall have supervision over theoperations of banks and exercise such regulatory powers asprovided in this Act and other pertinent laws over the operationsof finance companies and non-bank financial institutionsperforming quasi-banking functions, hereafter referred to as quasi-banks, and institutions performing similar functions.The primary objective of the Bangko Sentral is to maintainprice stability conducive to a balanced and sustainable growth of the economy. It shall also promote and maintain monetarystability and the convertibility of the peso.S
EC
. 4.
 Place of Business
._The Bangko Sentral
 
shall haveits principal place of business in Metro Manila, but may maintainbranches, agencies and correspondents in such other places asthe proper conduct of its business may require.S
EC
. 5.
Corporate Powers
._The Bangko Sentral is herebyauthorized to adopt, alter, and use a corporate seal which shall be judicially noticed; to enter into contracts; to lease or own real andpersonal property, and to sell or otherwise dispose of the same; tosue and be sued; and otherwise to do and perform any and allthings that may be necessary or proper to carry out the purposesof this Act.The
 
Bangko Sentral may acquire and hold such assets andincur such liabilities in connection with its operations authorizedby the provisions of this Act, or as are essential to the properconduct of such operations.The Bangko Sentral may compromise, condone or release,in whole or in part, any claim of or settled liability to the BangkoSentral, regardless of the amount involved, under such termsand conditions as may be prescribed by the Monetary Board toprotect the interests of the Bangko Sentral.
 
 A 
RTICLE
II.
 HE
 M 
ONETARY 
 B
OARD
S
EC
. 6.
Composition of the Monetary Board
._The powersand functions of the Bangko Sentral shall be exercised by theBangko Sentral Monetary Board, hereafter referred to as theMonetary Board, composed of seven (7) members appointed bythe President of the Philippines for a term of six (6) years.The seven (7) members are:(a)the Governor of the Bangko Sentral, who shall be theChairman of the Monetary Board. The Governor of the BangkoSentral shall be head of a department and his appointment shallbe subject to confirmation by the Commission on Appointments.Whenever the Governor is unable to attend a meeting of the Board,he shall designate a Deputy Governor to act as his alternate:
 Provided
, That in such event, the Monetary Board shall designateone of its members as acting Chairman;(b)a member of the Cabinet to be designated by thePresident of the Philippines. Whenever the designated CabinetMember is unable to attend a meeting of the Board, he shalldesignate an Undersecretary in his Department to attend as hisalternate; and(c)five (5) members who shall come from the private sector,all of whom shall serve full-time:
 Provided, however
, That of themembers first appointed under the provisions of this subsection,three (3) shall have a term of six (6) years, and the other two (2),three (3) years.No member of the Monetary Board may be reappointed morethan once.S
EC
. 7.
Vacancies
._Any vacancy in the Monetary Boardcreated by the death, resignation, or removal of any member shallbe filled by the appointment of a new member to complete theunexpired period of the term of the member concerned.

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